The Bitget token (BGB) has seen impressive growth, setting new all-time highs (ATH) almost daily over the past month.
However, recent indicators suggest this bullish momentum may be slowing, potentially leading to increased selling pressure as investors reassess their positions.
Bitget token may face sale
The Price DAA Divergence indicator is giving its first sell signal in four months, raising concerns about the sustainability of the BGB rally. The signal comes as investor participation has noticeably dropped, with many deciding to take a step back and watch how the market behaves heading into the new year.
This reduction in participation could weaken BGB’s ability to maintain upward momentum. While investor caution is understandable after such a significant rally, it also makes the token more susceptible to short-term corrections, especially if broader market trends turn bearish.
BGB’s macro momentum is influenced by its negative correlation with Bitcoin, which currently stands at -0.16. This inverse relationship means that BGB’s price trajectory is moving opposite to Bitcoin’s, a trend that could be cause for concern if the BTC price rises further.
Historically, BGB has demonstrated a strong recovery whenever its correlation with Bitcoin improves from a low. While negative correlation is a short-term concern, it also provides an opportunity for BGB to separate itself and forge its own path based on unique market conditions.
BGB Price Forecast: Return to ATH
The price of BGB has fallen 17% in the last 24 hours after rising 104% last week. The decline appears to be a natural downturn after a period of rapid growth and could be followed by further corrections in the near future.
If the drawdown continues, BGB could slip through and test the $4.90 support level, reversing much of its recent gains. Such a decrease could provoke massive profit-taking among investors, which will further affect the price of the token.
However, a strong recovery supported by bullish signals in the broader market could push BGB towards its current ATH of $8.49. Reaching a new high would refute the bearish thesis and signal new momentum for the token, cementing its position as a prominent player in the market.
